At the Annual General Meeting shareholders have approved proposals from the Board to make a minor change to the investment objective of the Company.
The new investment objective of the Company is:
“The Company aims to achieve long term growth in both capital and income by predominantly investing in equities (and their related securities) of continental European companies”
The Chairman of the Company would like to emphasise that the change in investment objective does not imply any change to the way in which Sam Morse invests shareholders money. Rather, it is an acknowledgement that income as well as capital growth are components of the performance which Sam seeks to achieve.
Allocation of Fees
Consistent with the changes in objective outlined above, the Board has elected to charge in future 75% of management fees and finance costs to capital, and 25% to revenue, reflecting the balance of the capital and revenue elements of total return experienced historically over the longer term. This will take effect in the 2018 financial year.
Following a review of the management fees payable to Fidelity the Board are pleased to report that the existing flat fee of 0.85% will only apply to the first £400 million of funds under management and that a new rate of 0.75% will be applied to funds in excess of £400 million. This commenced from 1 April 2018 and will represent a useful saving for shareholders.
The Board also welcomes Fidelity’s decision to absorb the cost of external investment research, which under the rules established by the latest Markets in Financial Instruments Directive of the EU (MIFID II) can no longer be recovered from broker dealing commissions. This would otherwise have resulted in an additional expense to the Company.
Further information on all the changes and proposed changes can be found in the latest Annual Report.